As El Salvador adopts Bitcoin as legal tender, a Dutch official blasted the cryptocurrency, calling for an urgent general ban.
Pieter Hasekamp, director of the Dutch Office for Economic Analysis at the Ministry of Economic Affairs and Climate Policy, published an essay titled ‘The Netherlands must ban bitcoin’.
According to the title of the essay, Hasekamp lists a long list of reasons why the Dutch government should impose an immediate total ban on the mining, trading and holding of Bitcoin (BTC). According to the official, this could cause the price to drop because Bitcoin “has no intrinsic value and only has value because others can accept it.”
The executive cited a common anti-crypto narrative, claiming that any cryptocurrency is incapable of performing any of the three functions of money as a unit of account, a means of payment and a store of value. He also cited other common anti-Bitcoin arguments, such as security concerns, fraud risks, and scams, and argued that crypto is a useful tool for criminal actors.
Hasekamp said the Netherlands has lagged behind countries that have decided to “curb the crypto hype” in recent years. “Dutch regulators have tried to strengthen the supervision of trading platforms, but without much success. The Central Planning Bureau highlighted the risks of crypto trading in 2018, but concluded that stricter regulation is not yet necessary, ”the official wrote.
Related: Dutch Regulators Unsure How Many Crypto Investors In The Netherlands
In his essay, Hasekamp paid particular attention to Gresham’s Law, a monetary principle that states that an overvalued currency, or “bad money,” tends to chase out a legally undervalued currency, or “good money”. . Calling Bitcoin “bad money,” Hasekamp argued that Gresham’s Law could work the other way around with Bitcoin:
“Cryptocurrencies have all the characteristics of ‘bad money’: unclear origin, uncertain valuation, shady business practices. […] Is Gresham’s Law Back? No, it’s the opposite. Cryptocurrencies are not used in regular payment transactions. […] Bad money disappears from circulation because no one wants to accept it anymore.